Thats where I got the inspiration from for thinking about a lot of accounting differently. Financial engineering that people seem to neglect or be to scared of considering.
With him sometimes Bain Capital made separate share classes, and I think they would give massive dividends periodically to the separate share class that only the 401k investors at Bain Capital would receive. I think its a really great strategy!
Buffett should be doing that in Berkshire Hathaway for their employees instead of being sad about how much tax his secretary pays
Or, the government should change the tax code to not make this possible and make the advantages of doing this moot. People need to be taxed, and we shouldn't have a system which requires a bunch of extra paperwork just for people to avoid it.
These simplistic ideas are exactly why it never will happen
Roth versions of tax deferred accounts only exists because the government is an irresponsible spender and needed revenues. It made the contract with the people because its like a degenerate crack addict child scrounging for cash, in its case only to keep convincing international investors that it can slowly pay debt. Wow the contract worked and you just caught on 22 years later.
What is your issue with people making good trades in a tax deferred and tax exempt accounts? That it needs more revenues again? The government will be fine, international investors are content with its revenue sources. These kinds of accounts are already subject to massive penalties and even UBTI regulations
My issue is that as a society, we want a percentage of the wealth that is created to be democratically controlled. We can debate which percentage and how that should be acquired, but the end social contract is that part of all wealth produced has some democratic component to it. For the last 5 is that decades, we've had groups of people gradually trying to evade more and more of that responsibility, and we aren't going to produce a functioning society that way.
With him sometimes Bain Capital made separate share classes, and I think they would give massive dividends periodically to the separate share class that only the 401k investors at Bain Capital would receive. I think its a really great strategy!
Buffett should be doing that in Berkshire Hathaway for their employees instead of being sad about how much tax his secretary pays